First RIVN rating from analysts is a Buy

[Electronaut]

Rivian Gets First Rating. It’s a Buy and $130 Price Target.

https://www.marketwatch.com/article...ng-its-a-buy-and-130-price-target-51638715882

December 5, 2021

The Rivian ratings deluge has started. Investors should be happy.

Rivian Automotive (ticker: RIVN) picked up its first rating. It’s a Buy from Wedbush analyst Dan Ives. His price target is $130, almost 25% higher than where Rivian closed for trading on Friday.

Ives calls Rivian an “EV stalwart in the making,” adding the company “looking to strategically launch itself into an untapped market as SUV/Pickup Truck EVs are virtually nonexistent in the EV market today.” Trucks and SUVs are very popular in the U.S., typically accounting for more than 60% of total passenger vehicle sales.

Given it’s the first rating, it’s the first chance for investors to look at estimates. Ives projects $3.6 billion in sales from about 45,000 vehicle deliveries in 2022 and $8.4 billion in sales from about 105,000 deliveries in 2023. The company isn’t expected to generate profit in either year.

Ives target price implies Rivian stock should trade for roughly 15 times estimated 2023 sales. Shares of Tesla (TSLA), the EV leader, trade for about 11 times estimated 2023 sales.

It’s a big, growth stock valuation, but Ives knows his way around growth stocks. He covers EVs and technology stocks such as Salesforce.com (CRM). On the automotive side of his coverage list, Ives rates shares of Tesla and General Motors (GM) both Buy. His price target for Tesla stock is $1,400 a share. His price target for GM is $85 a share.

The Buy ratings on GM, Tesla and now Rivian are predicated on Ives’ belief that EVs will become the dominant form of personal transportation in coming years.

More Rivian ratings will follow this one — most likely arriving on Monday. Wall Street brokers involved in an IPO have to wait 25 days to launch coverage. Including weekends, the prohibition has now lapsed.

Rivian investors will welcome some Buy ratings. The stock is down from a November 16 high of almost $180 a share. Rivian stock fell 6.7% this past week in what was a tough week for growth stocks. The Russell 1000 Growth Index dropped 2.2%. The S&P 500 fell 1.2% for the week and the Dow Jones Industrial Average dropped 0.9%.

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[kurtlikevonnegut]

I'm interested if the 45,000 projected deliveries are split between R1 and EDV or if that's just R1. If it's split, I wonder what the distribution is between the two. Rivian is committed to what, 10k fans in 2022?

 

[DuckTruck]

It's good to see a serious analyst toss their hat into the ring. I seem to be getting 4 to 6 pieces every day from The Motley Fool fool screaming "Buy!", "Sell!", "Buy!", "Sell!", each with an opportunity to upgrade my subscription to allow me to get their next market-shattering pick eight seconds faster than the person paying them $200 less per year.

Long-term hold here...

 

[sevengroove]

It's good to see a serious analyst toss their hat into the ring. I seem to be getting 4 to 6 pieces every day from The Motley Fool fool screaming "Buy!", "Sell!", "Buy!", "Sell!", each with an opportunity to upgrade my subscription to allow me to get their next market-shattering pick eight seconds faster than the person paying them $200 less per year.

Long-term hold here...

Seriously, they are so pushy! There are much better options out there to get your stock picks from, some of which might surprise you. But I won't do the easy, logical thing and tell you, you'll have to "click here" to subscribe.

 

[ChrissyOne]

It's good to see a serious analyst toss their hat into the ring. I seem to be getting 4 to 6 pieces every day from The Motley Fool fool screaming "Buy!", "Sell!", "Buy!", "Sell!", each with an opportunity to upgrade my subscription to allow me to get their next market-shattering pick eight seconds faster than the person paying them $200 less per year.

Long-term hold here...

​

Here's a summary of every Motley Fool article ever:

​

Is ABCompany a buy?​

Shares of ABC, maker of things, began trading today, but is it a buy? Let's dig in to the details. . .​

• Things are hard to make.
• ABC hasn't made many things yet.
• Other people might be better at making things.

Click here to subscribe for our report on 10 other stocks we wish you would buy instead!!​

 

[ChrissyOne]

Forgive me for being a bit long-winded, but please enjoy my collection of quotes from the tech industry when the iPhone was announced. It's good to keep this list in mind when you're trying to stay focussed on product quality and company fundamentals, and ignoring the ridiculous FUD.

Full Disclosure: I made a great big pile of money on AAPL by ignoring this.

Enjoy.

• “We are not at all worried. We think we’ve got the one mobile platform you’ll use for the rest of your life. [Apple] are not going to catch up.” – Scott Rockfeld, Microsoft Mobile Communications Group Product Manager, April 01, 2008​

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• “Microsoft, with Windows Mobile/ActiveSync, Nokia with Intellisync, and Motorola with Good Technology have all fared poorly in the enterprise. We have no reason to expect otherwise from Apple.” – Peter Misek, Canaccord Adams analyst, March 07, 2008​

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• “What does the iPhone offer that other cell phones do not already offer, or will offer soon? The answer is not very much… Apple’s stated goal of selling 10 million iPhones by the end of 2008 seems ambitious.” – Laura Goldman, LSG Capital, May 21, 2007​

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• Motorola’s then-Chairman and then-CEO Ed Zander said his company was ready for competition from Apple’s iPhone, due out the following month. “How do you deal with that?” Zander was asked at the Software 2007 conference. Zander quickly retorted, “How do they deal with us?” – Ed Zander, May 10, 2007​

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• “The iPhone is going to be nothing more than a temporary novelty that will eventually wear off.” – Gundeep Hora, CoolTechZone Editor-in-Chief, April 02, 2007​

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• “Apple should pull the plug on the iPhone… What Apple risks here is its reputation as a hot company that can do no wrong. If it’s smart it will call the iPhone a ‘reference design’ and pass it to some suckers to build with someone else’s marketing budget. Then it can wash its hands of any marketplace failures… Otherwise I’d advise people to cover their eyes. You are not going to like what you’ll see.” – John C. Dvorak, Bloated Gas Bag, March 28, 2007​

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• “Even if [the iPhone] is opened up to third parties, it is difficult to see how the installed base of iPhones can reach the level where it becomes a truly attractive service platform for operator and developer investment.” – Tony Cripps, Ovum Service Manager for Mobile User Experience, March 14, 2007​

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• “I’m more convinced than ever that, after an initial frenzy of publicity and sales to early adopters, iPhone sales will be unspectacular… iPhone may well become Apple’s next Newton.” – David Haskin, Computerworld, February 26, 2007​

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• “There’s an old saying — stick to your knitting — and Apple is not a mobile phone manufacturer, that’s not their knitting… I think people overreacted to it — there was not a lot of tremendously new stuff if you think about it.” – Greg Winn, Telstra’s operations chief, February 15, 2007​

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• “Consumers are not used to paying another couple hundred bucks more just because Apple makes a cool product. Some fans will buy [iPhone], but for the rest of us it’s a hard pill to swallow just to have the coolest thing.” – Neil Strother, NPD Group analyst, January 22, 2007​

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• “I can’t believe the hype being given to iPhone… I just have to wonder who will want one of these things (other than the religious faithful)… So please mark this post and come back in two years to see the results of my prediction: I predict they will not sell anywhere near the 10M Jobs predicts for 2008.” – Richard Sprague, Microsoft Senior Marketing Director, January 18, 2007​

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• “The iPhone’s willful disregard of the global handset market will come back to haunt Apple.” – Tero Kuittinen, RealMoney.com, January 18, 2007​

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• “[Apple’s iPhone] is the most expensive phone in the world and it doesn’t appeal to business customers because it doesn’t have a keyboard which makes it not a very good email machine… So, I, I kinda look at that and I say, well, I like our strategy. I like it a lot.” – Steve Ballmer, Microsoft CEO, January 17, 2007​

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• “The iPhone is nothing more than a luxury bauble that will appeal to a few gadget freaks. In terms of its impact on the industry, the iPhone is less relevant… Apple is unlikely to make much of an impact on this market… Apple will sell a few to its fans, but the iPhone won’t make a long-term mark on the industry.” – Matthew Lynn, Bloomberg, January 15, 2007​

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• “iPhone which doesn’t look, I mean to me, I’m looking at this thing and I think it’s kind of trending against, you know, what’s really going, what people are really liking on, in these phones nowadays, which are those little keypads. I mean, the Blackjack from Samsung, the Blackberry, obviously, you know kind of pushes this thing, the Palm, all these… And I guess some of these stocks went down on the Apple announcement, thinking that Apple could do no wrong, but I think Apple can do wrong and I think this is it.” – John C. Dvorak, Bloated Gas Bag, January 13, 2007​

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• “I am pretty skeptical. I don’t think [iPhone] will meet the fantastic predictions I have been reading. For starters, while Apple basically established the market for portable music players, the phone market is already established, with a number of major brands. Can Apple remake the phone market in its image? Success is far from guaranteed.” – Jack Gold, founder and principal analyst at J. Gold Associates, January 11, 2007​

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• “Apple will launch a mobile phone in January, and it will become available during 2007. It will be a lovely bit of kit, a pleasure to behold, and its limited functionality will be easy to access and use. The Apple phone will be exclusive to one of the major networks in each territory and some customers will switch networks just to get it, but not as many as had been hoped. As customers start to realise that the competition offers better functionality at a lower price, by negotiating a better subsidy, sales will stagnate. After a year a new version will be launched, but it will lack the innovation of the first and quickly vanish. The only question remaining is if, when the iPod phone fails, it will take the iPod with it.” – Bill Ray, The Register, December 26, 2006​

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• “The economics of something like [an Apple iPhone] aren’t that compelling.” – Rod Bare, Morningstar analyst, December 08, 2006​

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• “Apple is slated to come out with a new phone… And it will largely fail…. Sales for the phone will skyrocket initially. However, things will calm down, and the Apple phone will take its place on the shelves with the random video cameras, cell phones, wireless routers and other would-be hits… When the iPod emerged in late 2001, it solved some major problems with MP3 players. Unfortunately for Apple, problems like that don’t exist in the handset business. Cell phones aren’t clunky, inadequate devices. Instead, they are pretty good. Really good.” – Michael Kanellos, CNET, December 07, 2006​

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• “We’ve learned and struggled for a few years here figuring out how to make a decent phone. PC guys are not going to just figure this out. They’re not going to just walk in.” – Ed Colligan, Palm CEO, November 16, 2006​

 

[DuckTruck]

​

Here's a summary of every Motley Fool article ever:

​

Is ABCompany a buy?​

Shares of ABC, maker of things, began trading today, but is it a buy? Let's dig in to the details. . .​

• Things are hard to make.
• ABC hasn't made many things yet.
• Other people might be better at making things.

Click here to subscribe for our report on 10 other stocks we wish you would buy instead!!​

FWIW,

I just cancelled my M.F. (yep, double entendre there...) subscription before it auto-renwed. No easy feat with how they hide the links and make it impossible to talk to a real "Fool".

 

[SeaGeo]

@ChrissyOne with the receipts! Lol

 

[ChrissyOne]

@ChrissyOne with the receipts! Lol

I'll say! Here's the blog post where I first posted the list, originally from MacDailyNews, on the eve of the iPad launch, in December of 2009.

 

[DuckTruck]

Seriously, they are so pushy! There are much better options out there to get your stock picks from, some of which might surprise you. But I won't do the easy, logical thing and tell you, you'll have to "click here" to subscribe.

They'll have pearls of good advice, but they're often buried in heaps of bad stuff and an endless stream of shameless marketing. I've lost my inclination to sift through the site or wait for the market to possibly prove them right.

If someone told me there may be a diamond ring in one of a bank of porta-potties, I'd likely pass on doing a "deep dive" in hopes of finding it.

Sorry for that visual, but in my defense, I did wait until breakfast ended. ?

 

[ChrissyOne]

More ratings are coming in. Positive, for the most part, with a few surprisingly high targets from BofA and RBC - https://apple.news/ATqbBI2xNTbKewbcVnmnk_g


Rivian Automotive (NASDAQ:RIVN) is on watch after the quiet period on the stock expired to free up analysts to post ratings.


Positive ratings are in from Morgan Stanley (Overweight, $147 price target), Bank of America (Buy, price target $170), Piper Sandler (Overweight, price target $148), RBC Capital Markets (Outperform, price target $165), Deutsche Bank (Buy, price target $130) and Mizuho (Buy, price target $145).


Wedbush Securities analyst Dan Ives on the bull case: "With the popularity and consumer demand for EVs on the trucking/SUV market, we believe Rivian is in the catbird’s seat to take considerable market share in this EV arms race under its visionary CEO and founder RJ Scaringe... As one of the world's first luxury EV pickup/SUV manufacturers, the company expects to sell more than 742,000 units cumulatively over the next five years, and its 2 flagship models, the R1S and R1T, have already collectively received 48,000 reservations. We believe Rivian is set to create a new category in the EV space with its game-changing debuts, a massive Normal, Illinois factory footprint, and create a major brand within the EV market over the next decade."


There is also plenty of caution on Rivian (RIVN) with Wells Fargo (Equal-weight, price target $110), JPMorgan (Neutral, price target $104) and Goldman Sachs (Neutral, price target $94) all warning on execution risk and valuation.


Goldman Sachs analyst Mark Delaney reminds that the automotive industry has been historically difficult for new entrants to scale, including in electric vehicles. He also says that Rivian's vertical integration model is expensive as he projects about $20B of cash burn from through 2025. RIVN is noted to already trade at a sizable premium to the group median.


Shares of RIVN are down 2.27% premarket to $102.29 vs. the post-IPO range of $95.0 to $179.47.

 

[Redline]

Morgan Stanley calls Rivian "The One"

 

[ChrissyOne]

I saw the comparison of Rivian going up against Tesla as "Clark Kent is taking on Tony Stark," and now I can't unsee that.

Not an apt metaphor, though. Tony Stark actually invented things.

 

[fergie]

FWIW,

I just cancelled my M.F. (yep, double entendre there...) subscription before it auto-renwed. No easy feat with how they hide the links and make it impossible to talk to a real "Fool".

Thanks for the reminder! I didn't want to renew mine either and didn't realize it was on auto renew till I looked.

 

[DuckTruck]

Thanks for the reminder! I didn't want to renew mine either and didn't realize it was on auto renew till I looked.

Glad I could help save another from the clutches of that M.F. site! ?

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